For today's chart we've chosen to take a look at the iShares Russell 2000 Index (AMEX:IWM) because it was one of the most actively traded securities in the market. As you can see from the chart below, the index recently bounced off a long-term trendline and it is now testing the resistance of its 200-day moving average. Technical traders will use the recent move off the trendline as a signal of a potential move higher and it may be the glimmer of hope many are looking for given the recent market weakness.
We've also added the Relative Strength Index (RSI) because the cross above 30 can be used to validate the strength of the nearby support. Technical traders may use this relatively low RSI value to suggest that the pullback is exhausted and that it could result in further upside momentum.